Israeli billionaire Idan Ofer has cut his holding in liner operator Zim by about one-fifth, according to a filing made public on Wednesday.
Ofer company Kenon Holdings has sold about 6m shares in the New York-listed Israeli owner from the 30.8m stake reported in an annual report last March.
$463m stake remains
The filing does not indicate when Kenon sold the shares or for what price. However, at Tuesday's closing price of $18.68 on the New York Stock Exchange, the units sold would have brought in roughly $117m.
Kenon’s remaining holding of about 24.8m shares is worth some $463m. It still holds 20.8% of the company, but this is down from the previous position of 25.8%.
Zim’s shares have taken a roller coaster ride with the larger container ship market since a troubled initial public offering in January 2021 priced below the target range at $15, then initially traded down.
The pricing was quickly forgotten as Zim took flight amid a recovery from the depths of the Covid-19 pandemic, reaching a high of $91.23 last 17 March before the boom market finally deflated and sent it spiraling downward.
Zim confirmed in January that it had chartered three LNG-fuelled container ship newbuildings from an affiliate of Kenon. The company said it locked in the 7,000-teu vessels for eight years for $400m.
Zim said the trio will be built at South Korea’s Hyundai Samho Heavy Industries. They are scheduled to be delivered from the Hyundai Heavy Industries Holdings yard in the first and second quarters of 2024.
Although a day rate was not announced, the gross revenue figure announced implies that Zim is paying nearly $45,700 per day for each vessel.
In June 2021, Ofer celebrated Zim’s New York IPO at his seashore residence near Tel Aviv.
Ofer talked about the liner operator's fraught history and his involvement in past restructuring efforts.
He spoke of Zim's long-standing links with the Ofer Group and, particularly, his late father, Sammy Ofer, and his contribution to the company.
Ofer singled out Zim president and chief executive Eli Glickman for his “leadership and vision”.
Glickman then surprised Ofer in revealing that the container carrier had decided to name the first of 10 LNG-fuelled newbuildings of 15,000 teu the “Zim Sammy Ofer”.
The ships, due to be delivered in 2023, are chartered from tonnage provider Seaspan Corp.
“Idan was the only person who believed in Zim even during the hardest times,” Glickman said.
